U.S. SECURITIES AND EXCHANGE COMMISSION
                                          Washington, D.C. 20549

                                               FORM 10-QSB


(Mark One)

     [X]  QUARTERLY  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE  SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended:  March 31, 1998

                                                    or

    [  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

For the transition period from ______________________ to ____________________

Commission File Number:  33-89966

                                     TREMONT ADVISERS, INC.
         (Exact name of small business issuer as specified in its charter)
         Delaware                                06-1210532
(State or other jurisdiction 
 or incorporation or organization)   (I.R.S. Employer Identification No)

                              555 Theodore Fremd Avenue, Rye, New York 10580
                           (Address of principal executive offices) (Zip Code)

                                              (914) 925-1140
                                       (Issuer's telephone number)


 
(Former name, former address and former fiscal year, if changed since last
  report)

         Check whether the issuer (1) filed all reports  required to be filed by
         Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or
         for such  shorter  period)  that the issuer was  required  to file such
         reports,  and (2) has been subject to such filing  requirements for the
         past 90 days. Yes X No

APPLICABLE  ONLY TO ISSUERS  INVOLVED IN BANKRUPTCY  PROCEEDING  DURING THE
PRECEDING FIVE YEARS

Check whether the issuer filed all documents and reports required to be filed by
Section 12, 13, or 15(d) of the Exchange Act after the distribution of 
securities under a plan confirmed by a court.

         Yes                        No

                                  APPLICABLE ONLY TO CORPORATE ISSUERS:

The number of shares outstanding of the Registrant's Class A Common Stock, $0.01
par value, as of the close of business on May 8, 1998 was 1,284,718, and the 
number of shares outstanding of the Registrant's Class B Common Stock, $0.01 par
value, was 2,802,104 as of the same date.
<PAGE>


                                                  INDEX

                                          Tremont Advisers, Inc.

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements. (Unaudited)                                 Page

    Condensed Consolidated Balance Sheets - March 31, 1998 (unaudited)
       and December 31, 1997 (audited)                                       1

    Condensed Consolidated Statements of Income -
       three months ended March 31, 1998 and 1997                            2

    Condensed Consolidated Statements of Cash Flows -
       three months ended March 31, 1998 and 1997                            3

    Notes to Condensed Consolidated Financial Statements                     4


Item 2.  Management's Discussion and Analysis                                7



Part II - Other Information

Item 6.  Exhibits and Reports on Form 8-K                                   10

Signature                                                                   10

Exhibit 27 - Financial Data Schedule                                        11

<PAGE>

                                      PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

                                          Tremont Advisers, Inc.

                                  Condensed Consolidated Balance Sheets

<TABLE>
   <S>                                                              <C>              <C> 
                                                                 March 31         December 31
                                                                   1998              1997
                                                                (Unaudited)        (Audited)
Assets
Current Assets
   Cash and cash equivalents                                     $  782,134       $   820,801
   Accounts receivable, less allowances for bad debts of
     $35,000 and $25,000, respectively                            2,131,281         2,011,445
   Receivable from officer                                          115,000           200,000
   Prepaid expenses and other                                       113,955           123,103
Total current assets                                              3,142,370         3,155,349

Investments in limited partnerships (cost $808,467 and $803,467)  1,304,081         1,221,487
Investments in joint venture (cost $457,667 and $371,667)           158,481            99,345
Other investments (cost $86,000 and $86,000)                         71,807            75,420

Fixed assets, net                                                   380,296           401,153

Other assets                                                         28,958            28,958
Total assets                                                  $   5,085,993     $   4,981,712
Liabilities and shareholders' equity
Current liabilities
   Accounts payable                                           $      65,919     $      50,490
   Accrued expenses                                                 758,998         1,112,734
   Income taxes payable                                             174,888             1,143
   Deferred income taxes payable                                    171,500           171,500
Total current liabilities                                         1,171,305         1,335,867

Deferred income taxes payable                                       160,600           160,600


Shareholders' equity
   Preferred Stock $1 par value, 350,000 shares
     authorized, issued and outstanding - none                       ---                  ---
   Class A Common Stock, $0.01 par value, 5,000,000 shares
     authorized, 1,284,718 shares issued and outstanding             12,847            12,847
   Class B Common Stock, $0.01 par value, 5,000,000 shares
     authorized, 2,802,104 shares issued and outstanding             28,021            28,021
   Additional paid in capital                                     4,725,293         4,725,293
   Accumulated deficit                                           (1,012,073)       (1,280,916)
Total shareholders' equity                                        3,754,088         3,485,245
Total liabilities and shareholders' equity                   $    5,085,993    $    4,981,712

</TABLE>
See accompanying notes.

Note:  The  Condensed  Consolidated  Balance Sheet at December 31, 1997 has
been derived from the audited financial statements as of that date.

<PAGE>
                                          Tremont Advisers, Inc.

                               Condensed Consolidated Statements of Income
                                               (Unaudited)

                                                     Three Months Ended
                                                          March 31
                                                  1998               1997

Revenues
Consulting fees                                  $ 2,000,760       $ 1,108,462
Performance fees                                      35,882           101,554
Commissions                                          120,442            38,661
Total revenues                                     2,157,084         1,248,677

Expenses
Compensation                                         857,248           720,384
General and administrative                           546,527           258,133
Consulting                                           316,049           137,793
Depreciation                                          40,491            26,681
Total expenses                                     1,760,315         1,142,991


Equity earnings of limited partnerships, net          77,594            38,104
Loss from operations of joint ventures, net          (26,864)          (26,861)
Other income, net                                      8,167             6,619

Income before income taxes                           455,666           123,548
Provision for income taxes                           186,823            17,750
Net income                                     $     268,843      $    105,798

Net income per Common Share                    $         .07      $        .03


Net income per Common Share - 
  assuming dilution                            $         .06      $        .03



See accompanying notes.
<PAGE>
                                          Tremont Advisers, Inc.

                             Condensed Consolidated Statements of Cash Flows
                                               (Unaudited)

                                                        Three Months Ended
                                                               March 31
                                                     1998               1997

Operating Activities
Net income                                        $  268,843        $  105,798
Adjustments to reconcile net income
  to cash provided (used) by operating activities:
  Depreciation                                        40,491            26,681
  Equity earnings of limited partnerships            (77,594)          (38,104)
  Loss from operations of joint ventures              26,864            26,861
  Loss from other investments, net                     3,613             ---
  Changes in operating assets and liabilities:
    Accounts receivable, net                        (119,836)          308,342
    Receivable from officer                           85,000            ---
    Accounts payable                                  15,429           (12,799)
    Accrued expenses                                (353,736)         (516,780)
    Income taxes, net                                173,745            15,905
    Other                                              9,148            16,422
Net cash provided (used) by operating activities      71,967           (67,674)

Investing activities
Purchase of fixed assets                             (19,634)          (30,616)
Investments in limited partnerships                   (5,000)         (135,000)
Investments in joint ventures                        (86,000)            ---
Net cash used by investing activities               (110,634)         (165,616)

Net decrease in cash and cash equivalents            (38,667)         (233,290)
Cash and cash equivalents at beginning of period     820,801           551,710
Cash and cash equivalents at end of period      $    782,134       $   318,420


See accompanying notes.
<PAGE>
                                          Tremont Advisers, Inc.

             Notes to Condensed Consolidated Financial Statements (Unaudited)


NOTE A - Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-QSB and Item 310(b)
of Regulation S-B.  Accordingly,  they do not include all of the information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements. In the opinion of management, all adjustments ( consisting
of  normal  recurring  accruals)  necessary  for a fair  presentation  have been
included.  Operating results for the three month period ended March 31, 1998 are
not  necessarily  indicative  of the results  that may be expected  for the year
ending  December 31, 1998. For further  information,  refer to the  consolidated
financial  statements  and footnotes  thereto  included in the Company's  Annual
Report on Form 10-KSB for the fiscal year ended December 31, 1997.

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the reported amounts of revenue and expenses during the reporting period. Actual
results could differ from such estimates.

     Net Income  Per  Common  Share:  Basic  earnings  per share is based on the
weighted average number of shares of common stock outstanding during the period.
Diluted  earnings per share is based on the weighted average number of shares of
common stock outstanding  during the period adjusted for the effects of dilutive
securities.

     Concentrations  of Credit Risk: The Company's  accounts  receivable are not
concentrated  in any specific  geographic  region,  but are  concentrated in the
investment  industry.  At March 31, 1998, the Company had accounts receivable of
$285,998 and $246,375 from Starvest Funds,  Ltd. and The Broad Market Fund, L.P.
respectively.  Although the Company's  exposure to credit risk  associated  with
nonpayment  by  customers  is  affected  by  conditions  within  the  investment
industry,  no other  customer  exceeded 10% of the Company's net  receivables at
March 31, 1998.

     Income Taxes:  The provision  for income taxes  includes  federal and state
taxes  currently  payable and those  deferred  because of temporary  differences
between the financial  statement and the tax basis of assets and liabilities.  A
valuation  allowance is recorded,  based on available  evidence  when it is more
likely than not that some  portion or all of the deferred tax assets will not be
realized.

NOTE B - Investments in Limited Partnerships

     At March 31, 1998 and December 31, 1997,  Tremont Partners,  Inc.'s ("TPI")
investment in The Broad Market Fund, L.P. was $723,714 and $688,592 representing
 .46% and .51%, respectively, of the fund's net assets.  Summarized  financial
information of The Broad Market Fund, L.P. is as follows:

                     March 31, 1998              December 31, 1997
                      (Unaudited)                  (Audited)

Total assets           $159,564,828                   $162,511,390
Total liabilities         1,304,924                     28,567,596

<PAGE>





NOTE B - Investments in Limited Partnerships (continued)

                                       Three months ended
                                    March 31, 1998  March 31, 1997


Net investment income               $   981,236      $   295,630
Net realized and unrealized gain
 on investments                       6,268,587        4,351,753
Net income                           $7,249,823       $4,647,383


     At March 31,  1998,  TPI's  investments  in Meridian  Horizon  Fund,  L.P.,
GamTree,  L.P and The F.W.  Thompson Fund,  L.P. were  $335,471,  $188,734 , and
$56,162,  respectively.  At December  31,  1997,  TPI's  investment  in Meridian
Horizon Fund, L.P., Gamtree, L.P. and The F.W. Thompson Fund, L.P. was $299,483,
$186,717,  and  $46,695  respectively.  At  March  31,  1998 TPI did not have an
investment in The Broad Market Prime Fund,  L.P.;  however,  as General Partner,
TPI has a commitment to fund up to 1% of the limited  partnership  losses if and
when such losses occur.  For the three months ended March 31, 1998,  TPI did not
have  any  equity  in  earnings  of  limited   partnerships   for  this  limited
partnership.  The aggregated  summarized financial information of these entities
is as follows:

                               March 31, 1998           December 31, 1997
                                (Unaudited)                 (Audited)

Total assets                 $330,543,517                 $249,504,158
Total liabilities              56,104,431                   60,805,159

                                                 Three months ended
                                                March 31         March 31
                                                1998                1997

Net investment loss                        $   (750,408)       $  (306,313)
Net realized and unrealized gain
 on investments                              18,833,770           1,305,848
Net income                                  $18,083,362        $    999,535



NOTE C - Accrued Expenses

Accrued expenses consist of the following:

                                          March 31, 1998     December 31, 1997
                                           (Unaudited)           (Audited)

Professional and consulting fees         $    415,759          $    741,105
Compensation                                  182,000               200,000
Note payable                                   75,810                87,840
Employee benefit plan                          46,566                46,566
Other                                          38,863                37,223
                                         $    758,998          $  1,112,734

<PAGE>
NOTE D - Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per
share:

<TABLE>
       
  <S>                                                                                <C>                 <C>     
                                                                        Three Months Ended March 31
                                                                             1998             1997

Numerator:

   Net Income - numerator for basic and dilutive earnings
   per share (income available to shareholders)                         $   268,843          $   105,798

Denominator:

   Denominator for basic earnings per share - weighted-
   average shares                                                         4,086,822            3,884,457

Effect of dilutive securities:

   Employee stock options                                                   207,193               97,966

  Denominator for diluted earnings per share - adjusted
   weighted-average shares and assumed conversions                        4,294,015            3,982,423

Basic earnings per share                                                $      0.07          $      0.03

Diluted earnings per share                                              $      0.06          $      0.03
<PAGE>
</TABLE>
Item 2. Management's Discussion and Analysis

The Company's  revenues are derived from consulting and  specialized  investment
services provided to institutional and other clients, as well as management fees
from certain funds under management. Consulting fees are generally a function of
the  amount of assets  under  management  and the  percentage  fees  charged  to
clients.  Management fees are based on a percentage of the assets of the managed
fund and are usually  paid on a monthly or  quarterly  basis.  The Company  also
receives asset-based fees for investments placed by Tremont (Bermuda) Limited in
certain offshore mutual funds.  The Company  provides other consulting  services
generally  on a fixed  fee  basis,  whether  as annual  retainer  fees or single
project fees. The Company's principal operating expenses consist of its costs of
personnel and independent consultants.  It is management's intention to continue
the  Company's  focus on launching  new products and to taking  advantage of its
growing world-wide relationships to expand its operations.

Consulting fees for the three months ended March 31, 1998 increased by $892,298,
or approximately 80.5%, as compared to the three months ended March 31, 1997. At
the Company's principal domestic subsidiary,  Tremont Partners, Inc., consulting
fees  increased  from  $687,388  for the three  months  ended  March 31, 1997 to
approximately  $1,375,873  for the  three  months  ended  March 31,  1998.  This
increase was primarily  due to increases in revenues from the following  related
entities:  The Broad Market Prime Fund, L.P. ($287,296),  Meridian Horizon Fund,
L.P.  ($131,964),  and The Broad Market Fund, L.P.  ($114,203).  Consulting fees
also increased  domestically  as a result of TSI realizing  consulting fees from
the sale of limited partnership interests. These fees amounted to $8,189 for the
three  months  ended  March 31, 1998 and did not occur  during the three  months
ended March 31,  1997.  At Tremont  (Bermuda)  Limited,  the  Company's  foreign
subsidiary,  consulting  fees increased from $421,121 for the three months ended
March 31, 1997 to  approximately  $616,698  for the three months ended March 31,
1998.  This  increase was  primarily due to an increase in revenues from Kingate
Global Fund Class B Shares ($93,972),  increases in assets within the respective
investment vehicles and from new clients.

Performance fees for the three months ended March 31, 1998 decreased by $65,672,
or 64.67%,  as compared to the three months  ended March 31, 1997 because  fewer
investment vehicles outperformed pre-established benchmarks.

     Commissions  increased by $81,781,  or 211.53%,  for the three months ended
March 31,  1998  compared  to the three  months  ended  March  31,  1997.  These
increases resulted primarily from increased trading activities of TSI's clients.

     Management  expects  that during the  remainder  of 1998 the  Company  will
become less  dependent  on a small  number of large  clients,  as the Company is
developing relationships with additional entities. The Company is also utilizing
these  relationships  to create  diversified  ways to package and distribute its
proprietary products. In addition, management expects performance fee revenue to
increase during periods of positive  market  conditions,  but management  cannot
predict  with any  accuracy  whether  such  income  from  performance  fees will
continue in the future due to changing market conditions and outside factors.

     Compensation expense increased for the three months ended March 31, 1998 by
$136,864,  or 19%, as compared to the three months  ended March 31,  1997,  as a
result of the  Company's  continued  efforts  to attract  and  retain  qualified
employees. These efforts resulted in an increase in the number of employees from
28 at March 31, 1997 to 31 at March 31, 1998. In addition to the increase in the
number of employees, compensation expense also increased due to salary increases
of certain  employees that became  effective  January 1, 1998 and as a result of
increased health care costs due to the increase in the number of employees.

     General   and   administrative   expenses   consist   primarily   of  rent,
telecommunications,  travel  and  entertainment,  professional  fees  and  other
related expenses. General and administrative expenses were $546,527 and $258,133
for the three months ended March 31, 1998 and March 31, 1997, respectively.  The
increase in general  and  administrative  expenses  was  primarily  due to costs
<PAGE>
related to the Company's  continued  expansion to service its growth,  including
moving to a larger  office  facility in  September,  1997.  It is also due to an
increase in professional  fees and other related costs of launching new business
ventures which are currently in the start-up phase.

     Consulting  expenses  increased  $178,256 or 129.37%  for the three  months
ended  March 31,  1998 as  compared  to the three  months  ended  March 31, 1997
primarily  as a  result  of the  increase  in  revenues  from the  clients  that
participate in revenue sharing  arrangements.  For example,  Tremont Securities,
Inc. has an arrangement for securities clearance services with a clearing broker
dealer whereby a certain percentage of the commissions earned are shared.  Also,
Tremont  Partners,  Inc. and Tremont  (Bermuda)  Limited  have  revenue  sharing
arrangements with other parties relating to certain clients.

     Depreciation  increased  $13,810 or 51.76% for the three months ended March
31,  1998  compared  to the three  months  ended March 31,  1997.  The  increase
resulted from  purchases of fixed assets after March 31, 1997.  These  purchases
include  computer  upgrades,  new  software  and the  expansion  of the computer
network as well as  furniture  and  fixtures  for the  Company's  new  executive
offices.  The Company  made  capital  expenditures  of $19,634  during the three
months ended March 31, 1998.

     Equity earnings of limited partnerships  increased $39,490, or 103.64% ,for
the three  months  ended March 31, 1998 as  compared to the three  months  ended
March 31, 1997. This increase was a result of increased performance as well as a
greater asset base.

Profitability  is dependent  on the ability of the Company to maintain  existing
client  relationships,  several of which  currently  account  for a  significant
portion of the Company's  revenues,  to increase assets under management for its
clients, and to market its services to new accounts.

     Cash  provided by  operations  was $71,967 for the three months ended March
31, 1998 as compared to cash used in  operations of $67,674 for the three months
ended March 31 1997.  Cash  provided by  operating  activities  was  primarily a
result of profitable operations,  a decrease in a receivable from an officer and
increased taxes payable partially offset by increases in accounts receivable and
decreases in accrued  expenses.  These positive changes in cash flow, as well as
others, were offset by investing activities of $110,634.

     At March 31, 1998,  the Company owned options to purchase 8,000 shares of a
non-publicly  registered  investment  adviser  specializing in 401(k) investment
allocation  advice over the Internet.  The options were granted at $10 per share
and have vested or will vest 25% on January 1, 1996;  25% in equal  installments
at the end of each month between  January 1, 1997 and December 31, 1997; and 50%
in equal  installments  at the end of each  month  between  January  1, 1998 and
December 31, 1998.  The options have a five year term and were valued at zero by
the Company at March 31, 1998.

     At March 31, 1998, the Company owns 30,000 shares of common stock of a
non-public  financial  services company formed in 1996. The shares were received
by the Company as a result of an employee's  participation  as a board member of
such company. At March 31, 1998, the shares of common stock were valued at zero.

The Company  believes it has adequate  capital  resources and working capital to
bring to market those products  currently in the  developmental  stage, and that
the revenue  stream  from  these,  as well as from  existing  products,  will be
sufficient to support future  growth.  The Company has no material short term or
long term debt obligations

The Year 2000 issue is the result of computer  programs  being written using two
digits rather than four to determine the applicable year. Any computer  programs
that have time  sensitive  software may  recognize a date using "00" as the year
1900  rather  than the year  2000.  This  could  result in a system  failure  or
miscalculation causing significant disruptions of operations,  including,  among
other things, a temporary inability to process transactions or engage in similar
normal business activities. Based on a recent assessment, the Company determined
its computer  systems are currently  enabled for year 2000 entries.  The cost of
such  assessment  was immaterial to the Company.  However,  the Company could be
<PAGE>
adversely  affected  if the  computer  systems  used  by the  Company's  service
providers do not properly  process and calculate  date-related  information  and
data from and after January 1, 2000.  The Company is currently in  communication
with  these  other  companies  to  determine  if there is  reasonable  cause for
concern.

Certain  statements  in this  Management's  Discussion  and Analysis  constitute
"forward  looking  statements"  within  the  meaning of the  Private  Securities
Litigation Reform Act of 1995. Such forward looking statements involve known and
unknown  risks,  uncertainties  and other  factors  which  may cause the  actual
results,  performance, or achievements of the Company to be materially different
from any future results,  performance,  or achievements  expressed or implied by
such forward looking statements.  These forward looking statements were based on
various factors and were derived utilizing  numerous  important  assumptions and
other factors that could cause actual results to differ materially from those in
the forward looking statements, including, but not limited to: uncertainty as to
the Company's  future  profitability  and the  Company's  ability to develop and
implement   operational   and  financial   systems  to  manage  rapidly  growing
operations,  competition in the Company's existing and potential future lines of
business,  and other factors. Other factors and assumptions not identified above
were also involved in the derivation of these forward  looking  statements,  and
the failure of such other assumptions to be realized,  as well as other factors,
may also cause actual results to differ  materially  from those  projected.  The
Company  assumes no  obligation to update these  forward  looking  statements to
reflect  actual  results,  changes in  assumptions  or changes in other  factors
affecting such forward looking statements.
<PAGE>

                                       PART II - OTHER INFORMATION


Item 6.           Exhibits and Reports on Form 8-K

There were no reports on Form 8-K filed during the quarter ended March 31, 1998.

Signature

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                            Tremont Advisers, Inc.


Date: May 13, 1998                          /s/ Stephen T. Clayton
                                            Stephen T. Clayton
                                            Chief Financial Officer
                                            (Duly authorized Officer and
                                            Principal Financial and Accounting
                                            Officer)

 
<PAGE>


                                               EXHIBIT 27
                                         FINANCIAL DATA SCHEDULE

                                          TREMONT ADVISERS, INC.
                                              MARCH 31, 1998

     THIS SCHEDULE CONTAINS  UNAUDITED SUMMARY FINANCIAL  INFORMATION  EXTRACTED
FROM THE CONDENSED FINANCIAL STATEMENTS AS OF MARCH 31, 1998 AND FOR THE QUARTER
THEN ENDED.  THIS  INFORMATION IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
CONDENSED FINANCIAL STATEMENTS.

Cash and cash equivalents                                         $     782,134
Marketable securities                                                    ---
Accounts Receivable                                                   2,166,281
Allowances for doubtful accounts                                        (35,000)
Inventory                                                                ---
Total current assets                                                  3,142,370
Property, plant and equipment                                           779,936
Accumulated depreciation                                               (399,640)
Total assets                                                          5,085,993
Current liabilities                                                   1,171,305
Bonds                                                                    ---
Preferred stock-mandatory redemption                                     ---
Preferred stock-no mandatory redemption                                  ---
Common stock                                                             40,868
Other shareholders' equity                                            3,741,241
Total liabilities and shareholders' equity                            5,085,993
Sales                                                                    ---
Total revenues                                                        2,157,084
Cost of goods sold                                                       ---
Total expenses                                                        1,760,315
Other expenses                                                           ---
Loss provision                                                           ---
Interest expense                                                         ---
Income before taxes                                                     455,666
Provision for income tax                                                186,823
Income from continuing operations                                       268,843
Income from discontinuing operations                                     ---
Extraordinary items                                                      ---
Changes in accounting principles                                         ---
Net Income                                                              268,843
Earnings per share-basic                                                    .07
Earnings per share-assuming dilution                                        .06